Nigeria inks power project deal with Chinese firms

Friday, 14 December 2012 11:59

The hydro power agreement is an extension of an MoU signed between Nigeria and China’s Sinohydro Corporation to build another hydro power plant on the Mambila Plateau. (Image source: sxc.hu)Nigeria has signed a pact with Sinohydro-Cneec Corporation to build a US$1bn 700MW hydro power station on the Zungeru River in Niger state

The Sinohydro-Cneec Corporation is a synergy of two Chinese firms, the Sinohydro Corporation and the China National Electrical Equipment Corporation.

The agreement, which was signed by Nigerian minister of state for power Zainab Kuchi and Sinohydro-Cneec Corporation vice-president Du Nan, will be an extension of the Memorandum of Understanding (MoU) signed between Nigeria and China’s Sinohydro Corporation, recently, to build a 3,050MW hydro power plant on the eastern Mambila Plateau. The two hydro power projects were expected to be completed by 2014.

According to the minister, the Export-Import (Exim) Bank of China would bear most of the cost of the Zungeru hydro-power project. Exim will provide 75 per cent of required funds while Nigeria will provide the remaining 25 per cent.

Kuchi said the plant would create more than 1,000 employment opportunities and added that the local contract components of the project would be handled by Nigerian companies.

Meanwhile, a delegation comprising 25 men led by Swedish state secretary for trade Gunnar Oom, has expressed interest in investing in the Nigerian power sector.

Oom said, “Nigeria is one of the real powers in sub-Saharan Africa. Investing int he country is the right decision and it is traditionally the right place for Swede companies. Trade between the two countries has increased by 52 per cent.”

The Swedish state secretary also added that he was “excited by the entrepreneurial spirit in this country and if that is guided to the right direction there’s such a bright future for the country”.